Westmoreland Coal Co. reported a $7.6 million loss attributable to shareholders, or 41 cents per share, in the final quarter of 2016, an improvement over $110.2 million loss reported in the year-ago period.
Westmoreland also reported a record high adjusted EBITDA for the second quarter in a row. The company's quarterly adjusted EBITDA for the fourth quarter of 2016 was $89.1 million. The coal producer reported an adjusted EBITDA of $71.2 million in the third quarter of 2016 based on "solid demand" for its product.
"During 2016, we delivered on our two main commitments of maximizing free cash flow generation and reducing our debt position, which we achieved while reporting record adjusted EBITDA and free cash flow," said Chief Executive Officer, Kevin Paprzycki in a release. "This is a direct result of the resiliency of our business model and outstanding performance by our operators, despite an otherwise challenging market environment. We also took steps to significantly reduce the cash burn from our non-core assets, Coal Valley and ROVA, and to position them such that we are more aggressively pursuing strategic alternatives. As we look toward 2017, we remain focused on maximizing cash generation and strengthening our balance sheet, supported, in part, by the recent Capital Power prepayment, which provides additional financial flexibility to pursue our goals."
The company reported a revenue of $392.7 million in the fourth quarter from 15 million tons sold, and a full year revenue of $1.5 billion from 54.7 million tons sold.
For the full year, Westmoreland reported a cash flow provided by operating activities of $151.9 million and a higher-than-expected free cash flow of $112.6 million.
Paprzycki said the producer's 2017 outlook was similar to its 2016 expected performance Westmoreland's "resilient business model continues to yield consistent, predictable results."
The company announced this month that it was modifying its revolving credit facility and announced it was increasing its guidance range for free cash flow when it postponed the release of its quarterly earnings report.